Immediate implementation of measures to grow exports critical

The Mid-Year Fiscal Policy Review Statement outlined measures with a bearing on the export sector. These include the following:

Export permits and associated bureaucracy

Exports have also been constrained by the bureaucratic delays in the issuance of export permits as well as the attendant levies and fees related to these regulations and requirements.

ZimTrade and business membership Organisations have been lobbying Government to remove bureaucratic delays in the issuance of export permits where they are required.

The Review Statement highlighted some positive steps designed to address this issue.

For example, the Ease of Doing Business reforms are targeting the removal of impediments to exporting, including improving border efficiency management systems.

Measures being pursued are intended to streamline export documentation to reduce processing time, creation of a one-stop-shop for processing of export and import documentation as well as the review of the related laws, giving rise to such stringent conditions.

Enhancing horticulture exports

The Review Statement identifies horticulture as a critical sector for the growth of exports.

Measures introduced to stimulate horticulture exports include assisting small scale farmers through support from development partners.

The support includes incentives targeting crops such as flowers, fruits, coffee, tea and other crops that have quick turn-around.

Broadening currency usage

One of the biggest threats to export performance is the continued strengthening of the US dollar against the currencies of our major trading partners.

This has seen cost build-ups squeezing out profit margins when export receipts are eventually realised.

The use of the US dollar in the production market when the ultimate objective is to market the product in the region affects export competitiveness.

The review Statement encouraged the use other currencies such as the rand and euro, in addition to the US dollar.

There is need for immediate implementation of the pronounced measures to compliment export development and promotion initiatives being spearheaded by ZimTrade.

Some of these reforms also have to be supported by a robust legislative framework, hence the need to expedite the necessary parliamentary processes. – ZimTrade.